A firm operated at 90% of capacity for the past year, during which fixed costs were $420,000, variable costs were 40% of sales, and sales were $1,000,000. What was operating profit?

A company  has invested assets of $3,500,000,   total sales of 30,000 units and a desired ROI per unit of 20% .  What is the ROI per unit?  Group of answer choices $233.33 $70. $23.33 $700,000.

2155 Lake Sales had $2,300,000 in sales last month. The contribution margin ratio was 40% and operating profits were $180,000. What sales volume does Lake's need to yield a $370,000 operating profit?

Westerville Company reported the following results from last year’s operations: Sales $ 1,500,000 Variable expenses 690,000 Contribution margin 810,000 Fixed expenses 435,000 Net operating income $ 375,000 Average operating assets $ 1,250,000 At the beginning of this year, the company has a $350,000 investment opportunity with the following cost and revenue characteristics: Sales $ 420,000   Contribution margin ratio 70 % of sales Fixed expenses $ 252,000   The company’s minimum required rate of return is 10%. 1. Assume that the contribution margin ratio of the investment opportunity was 65% instead of 70%. If Westerville’s Chief Executive Officer will earn a bonus only if her residual income from this year exceeds her residual income from last year, would she pursue the investment opportunity? yes or no 2.  Would the owners of the company want her to pursue the investment opportunity?

Westerville Company reported the following results from last year’s operations:   Sales $ 1,800,000 Variable expenses 740,000 Contribution margin 1,060,000 Fixed expenses 700,000 Net operating income $ 360,000 Average operating assets $ 1,200,000   At the beginning of this year, the company has a $400,000 investment opportunity with the following cost and revenue characteristics:   Sales $ 600,000   Contribution margin ratio 60 % of sales Fixed expenses $ 288,000     The company’s minimum required rate of return is 10%.   6. What is the ROI related to this year’s investment opportunity? (Do not round intermediate calculations.)   7. If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year? (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)   8. If the company pursues the investment opportunity and otherwise performs the same as last year,…

Company A has current sales of $10,717,172 and a 43% contribution margin. Its fixed costs are $2,370,653. Company B is a service firm with current service revenue of $5,488,617 and a 19% contribution margin. Company B’s fixed costs are $597,932. Compute the degree of operating leverage for Company B if there was a 12% increase in revenue. Round to the hundredth, two decimals.

A firm operated at 90% of capacity for the past year, during which fixed costs were $420,000, variable costs were 40% of sales, and sales were $1,000,000. Operating profit was: Answer a. $980,000 b. $420,000 c. $1,080,000 d. $180,000

Elway Company provided the following income statement for the last year: Sales $714,390,000 Less: Variable expenses 557,689,000 Contribution margin $156,701,000 Less: Fixed expenses 195,362,000 Operating income $-38,661,000 At the beginning of last year, Elway had $38,657,000 in operating assets. At the end of the year, Elway had $41,360,000 in operating assets. Required: 1.  Compute average operating assets.$fill in the blank 1 2.  Compute the margin (as a percent) and turnover ratios for last year. If required, round your answers to two decimal places. Margin fill in the blank 2 % Turnover fill in the blank 3 3.  Compute ROI as a percent. Use the part 2 final answers in these calculations and round the final answer to two decimal places.fill in the blank 4 % 4. ROI measures a company’s ability to generate     relative to its investment in assets. The greater the ROI, the     efficiently the company is generating from its assets. 5. CONCEPTUAL CONNECTION Comment…

Westerville Company reported the following results from last year’s operations:   Sales $ 1,800,000 Variable expenses 740,000 Contribution margin 1,060,000 Fixed expenses 700,000 Net operating income $ 360,000 Average operating assets $ 1,200,000   At the beginning of this year, the company has a $400,000 investment opportunity with the following cost and revenue characteristics:   Sales $ 600,000   Contribution margin ratio 60 % of sales Fixed expenses $ 288,000     The company’s minimum required rate of return is 10%.   2. What is last year’s turnover? (Round your answer to 1 decimal place.)   3. What is last year’s return on investment (ROI)? (Round your intermediate calculations to 1 decimal place.)   4. What is the margin related to this year’s investment opportunity?   5. What is the turnover related to this year’s investment opportunity? (Round your answer to 1 decimal place.)